The decrease in the US dollar spending limit for credit cards by banks could drive the demand for black market forex.
This could mean the consumer pays higher prices at the end of the day.
Local economist, Dr Vaalimikki Arjoon, spoke to 103.1FM News today about the implications of this lower allocation.
Dr Arjoon noted the demand for black market forex and its effect of this situation.
Dr Arjoon said structural inequity in the business landscape could weaken the overall economic diversification thrust.
He added that lower spending limit also stands to affect families that need the credit card to help pay tuition fees or even medical bills abroad.
